Business Analytics _
Session 9 & 10 _ Group G
Multidimensional
scaling (MDS) is often used in Marketing to identify key dimensions
underlying customer evaluations of products, services or companies.
The purpose of MDS is to transform consumer judgments of similarity
or preference (e.g. preference for stores or brands) into distances represented
in multidimensional space. The resulting perceptual maps show the
relative positioning of all objects.
Once the data is in hand, multidimensional scaling can help determine:
• What dimensions respondents use
when evaluating objects
• How many dimensions they may use
in a particular situation
• The relative importance of each
dimension, and
• How the objects are related
perceptually
Perceptual
mapping is a diagrammatic technique used by asset marketers that attempts to visually display the perceptions of
customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to
their competition.
Perpetual mapping software helps in a dynamically
changing environment when objects in the matrix are removed or added.
Perceptual
maps can have any number of dimensions but the most common is two dimensions.
Two types of Perceptual Mapping is possible
1.
Overall Similarity
2.
Attribute Based
Overall Similarity:
Asking respondents about how different or how similar a pair of objects are
Advantage: Sometimes hidden attributes of an object are
exposed and understood
Disadvantage: In order to make a proper interpretation
complete information about the objects is required.
Attribute Based: Listing
out all the attributes and ranking them in an order
Disadvantage: We may miss out mapping of some of the
attributes
In Perceptual mapping 2 kinds of matrices are used
1.
Similarity matrix: When most similar object distances
are taken as 1
2.
Dissimilarity matrix: When most similar object distances
are taken as 0
Submitted By
Lakshmi Sravanthi
HR Batch - SIBMB
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